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FOS Capital Ltd (AU:FOS)
ASX:FOS
Australian Market

FOS Capital Ltd (FOS) AI Stock Analysis

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AU

FOS Capital Ltd

(Sydney:FOS)

Rating:75Outperform
Price Target:
AU$0.50
▲(56.25%Upside)
FOS Capital Ltd receives a strong overall score driven by robust financial performance and fair valuation. The company's efficient operations and cash flow management highlight its capability for sustained growth. Despite weaker technical momentum, the stock's valuation and dividend yield support its attractiveness.

FOS Capital Ltd (FOS) vs. iShares MSCI Australia ETF (EWA)

FOS Capital Ltd Business Overview & Revenue Model

Company DescriptionFOS Capital Ltd, through its subsidiaries, manufactures and distributes commercial luminaires, outdoor fittings, linear extruded lighting, and architectural lighting solutions in Australia and New Zealand. Its brand portfolio includes JSB Lighting, FORMA Lighting, VEKTA PROFILES, FREND Lighting, MEGABAY, and LIGHTING YOUNGKONG. The company was incorporated in 2019 and is based in Richmond, Australia. FOS Capital Limited is a subsidiary of SKM Investment Group Pty Ltd.
How the Company Makes MoneyFOS Capital Ltd generates revenue through the sale of its lighting products and solutions. The company's key revenue streams include direct sales to commercial and industrial clients, as well as partnerships with distributors and retailers who sell FOS's products to end consumers. Additionally, FOS may engage in custom lighting projects and provide consulting services to optimize lighting systems for clients, contributing to its earnings. The company's focus on energy-efficient and sustainable products also positions it favorably in markets where energy conservation and environmental impact are significant concerns.

FOS Capital Ltd Financial Statement Overview

Summary
FOS Capital Ltd presents a robust financial performance characterized by strong revenue growth, efficient operations, and solid cash flow management. The company's strategic focus on profitability and prudent financial management positions it well for future growth. The financial stability is supported by a healthy profit margin, solid equity base, and effective leverage management.
Income Statement
85
Very Positive
FOS Capital Ltd shows strong revenue growth with a significant increase from $13.5M in 2022 to $28.7M in TTM. Gross profit margin is robust at 37.7%, and net profit margin is healthy at 4.5%. EBIT and EBITDA margins are also strong, reflecting efficient operations. Overall, the company demonstrates a solid growth trajectory and profitability in the Electrical Equipment & Parts industry.
Balance Sheet
78
Positive
The balance sheet indicates a stable financial position with a debt-to-equity ratio of 0.53, suggesting manageable leverage. Return on equity is decent at 12.7%, showing effective use of equity to generate profits. The equity ratio is 51.8%, indicating a balanced capital structure. The company maintains a strong equity base while managing its debt efficiently.
Cash Flow
82
Very Positive
Cash flow analysis reveals a substantial improvement in operating cash flow to net income ratio, indicating strong cash earnings. Free cash flow growth is impressive, with a significant increase from $0.9M in 2023 to $4.1M in TTM. The company exhibits excellent cash generation capabilities, supporting its operations and growth initiatives.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue28.67M24.53M17.12M13.51M8.16M5.54M
Gross Profit10.82M9.15M5.79M5.72M3.28M1.91M
EBITDA2.38M2.46M1.58M1.29M1.46M646.65K
Net Income1.29M632.16K583.94K348.94K742.11K123.07K
Balance Sheet
Total Assets19.58M21.78M13.62M11.79M10.98M4.88M
Cash, Cash Equivalents and Short-Term Investments1.22M1.68M1.41M1.89M2.97M648.61K
Total Debt5.36M5.20M1.09M1.46M1.31M782.08K
Total Liabilities9.43M11.87M4.34M4.25M4.06M1.99M
Stockholders Equity10.14M9.91M9.29M7.54M6.92M2.89M
Cash Flow
Free Cash Flow4.08M949.96K-347.76K609.17K-902.38K19.00
Operating Cash Flow4.11M1.01M-115.56K704.63K-902.38K75.05K
Investing Cash Flow-1.30M-2.33M-830.45K-849.76K1.20M-75.03K
Financing Cash Flow-2.78M1.59M441.96K-831.95K2.02M49.51K

FOS Capital Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.32
Price Trends
50DMA
0.31
Positive
100DMA
0.31
Positive
200DMA
0.32
Negative
Market Momentum
MACD
<0.01
Negative
RSI
52.99
Neutral
STOCH
76.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:FOS, the sentiment is Positive. The current price of 0.32 is above the 20-day moving average (MA) of 0.31, above the 50-day MA of 0.31, and below the 200-day MA of 0.32, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.99 is Neutral, neither overbought nor oversold. The STOCH value of 76.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:FOS.

FOS Capital Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUFOS
75
Outperform
AU$22.86M14.1713.21%2.94%55.78%306.78%
67
Neutral
£2.80B10.494.69%217.64%2.40%-24.53%
$16.77M
$32.96M2.47
AURFT
65
Neutral
AU$6.91M3.7022.49%-0.59%575.00%
AUH2G
47
Neutral
AU$13.07M-39.65%56.47%53.66%
AUEGY
25
Underperform
AU$13.39M-1809.70%-33.34%40.97%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:FOS
FOS Capital Ltd
0.32
0.09
39.13%
REFXF
Redflow Limited
0.06
-0.02
-25.00%
MNSEF
Magnis Energy Technologies Limited
0.02
0.00
0.00%
AU:RFT
Rectifier Technologies Ltd
0.01
0.00
0.00%
AU:H2G
Tempo Australia Ltd
0.02
0.00
0.00%
AU:EGY
Energy Technologies Limited
0.03
-0.01
-25.00%

FOS Capital Ltd Corporate Events

FOS Capital Expands Through Strategic Acquisitions and Share Issuance
Jun 26, 2025

FOS Capital Ltd has announced the issuance of new ordinary shares to facilitate the acquisition of Glowing Structures and street lighting business assets from Traffic Technologies Ltd. This strategic move is aimed at expanding its operational capabilities and market reach, while also incentivizing employees through an employee incentive program.

FOS Capital Expands Through Strategic Acquisitions and Share Issuance
Jun 26, 2025

FOS Capital Ltd has issued a notice under Section 708A(5)(e) of the Corporations Act regarding the issuance of ordinary shares. These shares were issued to facilitate the acquisition of Glowing Structures and street lighting business assets from Traffic Technologies Ltd, as well as to support an employee incentive program. This strategic move is expected to strengthen FOS Capital’s operational capabilities and market presence, particularly in the street lighting sector.

FOS Capital Ltd Announces Quotation of New Securities
Jun 23, 2025

FOS Capital Ltd has announced the quotation of 138,889 ordinary fully paid securities on the Australian Securities Exchange (ASX) as of June 24, 2025. This move is part of previously announced transactions, potentially enhancing the company’s market presence and providing opportunities for stakeholders.

FOS Capital Completes Acquisition of Aldridge Traffic Systems
Jun 23, 2025

FOS Capital Limited has successfully completed the acquisition of Aldridge Traffic Systems and a related share placement, raising A$3.7 million through institutional and sophisticated investors. This acquisition enhances FOS’s presence in the Australian lighting solutions market, with the company aiming to add value to the acquired assets and restore them to their former position. The transaction reflects strong investor support and aligns with FOS’s strategy to expand its market share.

FOS Capital Advances with Aldridge Traffic Systems Acquisition
Jun 19, 2025

FOS Capital Limited has announced the fulfillment of all conditions necessary for the acquisition of Aldridge Traffic Systems, marking a significant step towards completion. This strategic move is expected to enhance FOS’s market position and contribute to its goal of increasing market share in the fragmented lighting solutions industry.

FOS Capital Ltd Announces Proposed Securities Issue
Jun 11, 2025

FOS Capital Ltd has announced a proposed issue of 138,889 ordinary fully paid securities, scheduled for issuance on June 23, 2025. This move is part of a placement or other type of issue, and the company has applied for the quotation of these securities on the ASX, indicating a strategic effort to enhance its market presence and potentially attract new investors.

FOS Capital Ltd Announces Proposed Securities Issue
Jun 11, 2025

FOS Capital Ltd has announced a proposed issue of 12,333,334 ordinary fully paid securities, scheduled for June 23, 2025. This move is part of a placement or other type of issue, potentially impacting the company’s market positioning by increasing its equity base and providing additional capital for operations or strategic initiatives.

FOS Capital Ltd to Acquire Aldridge Traffic Systems and Raise Equity
Jun 11, 2025

FOS Capital Ltd, through its subsidiary FOS Lighting Pty Ltd, is set to acquire the street lighting business assets of Aldridge Traffic Systems from Traffic Technologies Ltd for $3.1 million. This acquisition, expected to complete by 20 June 2025, includes plant, equipment, inventory, and intellectual property, and will be funded by a $3.7 million equity raising. The transaction is aimed at restoring and expanding ATS while divesting non-core assets. This strategic move is expected to strengthen FOS’s position in the street lighting market and provide additional working capital for future growth.

FOS Capital Expands with Acquisition of Aldridge Traffic Systems
Jun 11, 2025

FOS Capital Ltd has raised A$3.7 million through a placement to fund the acquisition of Aldridge Traffic Systems (ATS) from Traffic Technologies Ltd. This acquisition aligns with FOS’s strategy to expand its presence in the Australian lighting market and leverage ATS’s established position in the road lighting industry. The acquisition is expected to enhance FOS’s operational scale and market reach, supporting its strategic objectives and ongoing government infrastructure projects.

FOS Capital Ltd Announces Quotation of New Securities
May 13, 2025

FOS Capital Ltd has announced the application for quotation of 967,742 ordinary fully paid securities on the Australian Securities Exchange (ASX). This move is part of a previously announced transaction, indicating the company’s ongoing efforts to enhance its market presence and operational capabilities.

FOS Capital Expands with Acquisition of Glowing Structures
May 6, 2025

FOS Capital Limited has acquired Glowing Structures, a Melbourne-based specialist lighting design consultancy, for $700k. This acquisition is expected to enhance FOS’s market position by converting Glowing Structures’ sales specifications into sales of FOS’s lighting products, with the founder of Glowing Structures continuing in his role and becoming a key shareholder.

FOS Capital Ltd Initiates Trading Halt Ahead of Acquisition Announcement
May 5, 2025

FOS Capital Ltd has requested a trading halt on its securities as it prepares to make an announcement regarding a proposed business acquisition. The halt will remain in effect until the announcement is made or until normal trading resumes on 7 May 2025, whichever comes first. This move indicates a significant development for the company, potentially impacting its market position and stakeholder interests.

FOS Capital Acquires Substantial Stake in Anagenics
Apr 10, 2025

FOS Capital Limited has become a substantial holder in Anagenics Limited, acquiring a 7.05% voting power through the issuance of 35,000,000 ordinary fully paid shares. These shares were issued in lieu of fees payable by Anagenics Ltd, marking a significant financial transaction that could impact the company’s influence and decision-making within Anagenics.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 28, 2025